Overview of the limits applicable to large exposures across Europe

Transcription

1 Annex [ II-A ] Overvew of he lms applcable o large exposures across Europe Lms mplemened by counry AT BE C CZ DE DK EE EL ES FI FR HU IE IT LT LU LV MT L PL PT SE SI SK UK IS LI O RO A cred nsuon may no ncur an exposure o a clen or group of conneced clens he value of whch exceed 25% of s own funds (Ar 111(1)) () () A cred nsuon may no ncur large exposures whch n oal exceed 800% of s own funds (Ar 111(3)) () () Every nsuon belongng o a bankng group mus respec a lm of 40% of he exposure value of any asse (loans; deb nsrumens, shares or oher capal nsrumens ssued by he clen and held by he bank, ec.) or off-balance-shee em (guaranees, posons semmng from dervave nsrumens, boh cred and fnancal, ec.) referred o a sngle clen or group of conneced clens. The 25% lm s appled for he bankng group a a level. () The lms lad down n Ar 111(1) and 111(3), o be observed on an ndvdual bass by nsuons subjec o supervson on a bass are 40% and 12 mes he own funds, respecvely. more srngen lms? (*) Member saes may mpose lms more srngen han hose lad down n Arcle 111. (Ar 113(1)) AT BE C CZ DE DK EE EL ES FI FR HU IE IT LT LU The oal value of exposures n respec of all of a bank's drecors (and conneced persons) ogeher shall no, a any me, exceed 40% of s own funds or such oher lower percenage ha he CBC may deermne from me o me, and he oal value of any unsecured exposures whch are graned o all a bank's drecors (and conneced persons) ogeher shall no exceed, a any me, 5% of s own funds or such oher lower percenage as he CBC may deermne from me o me" Exposures o conneced persons or o shareholders of he cred nsuon and shareholders of companes belongng o he same consoldaon group as he cred nsuon f such shareholders hold more han 1 per cen of he share capal of he companes shall no exceed 5 per cen of own funds. Ths lm does no o he paren companes and subsdares subjec o he Member Sae s supervson on a bass exposures o a clen or a group of conneced clens (oher han cred nsuons, specfed nvesmen nsuons or fnancal nsuons) n whch he reporng nsuon has a major neres may no exceed 10% of own funds. The aggregae of such exposures may no exceed 30% of own funds. an nsuon s exposure o any one s drecors, ncludng exposures o any busness n whch he drecor has a major neres, may no exceed 2% of own funds. The aggregae of such exposures may no exceed 10% of own funds. Thrdly, an nsuon s exposure o any one of s sgnfcan shareholders (oher han cred nsuons and specfed nvesmen nsuons) ncludng exposures o busnesses n whch a sgnfcan shareholder has a major neres, may no exceed 10% of own funds. The aggregae of such exposures may no exceed 30% of own funds. he amoun of cred graned o a person who conrols a cred nsuon or who owns, drecly or ndrecly, a qualfyng holdng (15%) shall no exceed, on he whole and a any me, 20% of he nsuon s own funds. Moreover, he amoun of cred graned o a company n whch he cred nsuon owns a holdng whch exceeds a hreshold of 20%, shall no go beyond 20% of he nsuon s own funds. more srngen lms? (*) Member saes may mpose lms more srngen han hose lad down n Arcle 111. (Ar 113(1)) LV () A 15% lm s appled o he oal exposure o persons relaed o he nsuon. They are (a) shareholders who have qualfed holdngs n he nsuon, and he spouses, parens and chldren of such shareholders who are naural persons, subsdary underakngs of a nsuon, and commercal companes n whch he nsuon has a subsanal nfluence, (c) he charpe`recors, he head and members of he nernal aud servce, he nsuon s conroller and oher employees of he nsuon who are auhorsed o conduc he plannng, managemen and conrol of he operaons of he nsuon, and who are lable for, as well as he spouses, parens and chldren of such persons, and (d) commercal companes n whch he persons referred o n a) and c) have qualfed holdngs. Ths does no o he holdngs of a nsuon n he equy capal of s subsdary companes or n he equy capal of hose commercal companes n whch he nsuon has a subsanal nfluence. MT Cred nsuons are expeced o adop polces whch wll no lead o he 10% lm beng exceeded as a maer of course and he more he exposures exceed he 10% lm, he more he respecve cred nsuon s managemen wll be expeced o exercse dlgence and prudence. Alhough he 10% lm s he mnmum hreshold, he Auhory may prudenly se a lower percenage for some cred nsuons. L The rao of a bank s large exposure o s own funds of fnancng vs-à-vs a person wh a specal relaonshp wh he bank, shall be no more han a. 2% n he case of a naural person; b. 10% n he case of a legal person, excep banks based n a Zone A counry.(2) The rao o own funds of a bank s oal exposure o persons havng a specal relaonshp wh he bank shall be no more han 40%. PL The aggregae amoun of loans, cash advances, guaranees and endorsemens exended o members of he bank's drecng bodes and persons occupyng manageral posons a he bank (and pares conneced wh hem) shall no exceed 10% of he bank's oal core capal, and a cooperave banks shall no exceed 25% of he bank's oal core capal PT Loans o owners of qualfyng holdngs are subjec o 2 lms: (1) he amoun of cred graned, n any form or ype, ncludng he provson of guaranees, o a person who owns, drecly or ndrecly, a qualfyng holdng n a cred nsuon or o companes drecly or ndrecly conrolled by such a person, or belongng o he same group as such a person, shall no exceed, on he whole and a any me, 10% of he nsuon s own funds, and (2) he oal amoun of cred graned o all owners of qualfyng holdngs and o he companes referred o above shall no exceed, a any me, 30% of he nsuon s own funds. SE SI SK UK IS O RO (v) Exposure o a sngle person n a specal relaonshp wh he bank shall no exceed 20% of s own funds and he sum shall no exceed 200% of s own funds.ths person s:1) member of he bank's managemen board;2) member of he bank's supervsory board;3) bank's auhorsed agen;4) a legal person ha s no a bank and ha has a member of s managemen board or an auhorsed agen who s a person specfed n 1), 2) or 3);5) a naural person who s he drec or ndrec owner of shares n he bank on he bass of whch he/she holds a leas 5% of he vong rghs or a sake of a leas 5%;6) a legal person ha s no a bank and ha s he drec or ndrec owner of shares n he bank on he bass of whch holds a leas 10% of he vong rghs or a sake of a leas 10%;7) close relaves of persons from 1) o 3) and 5);8) a member of he managemen board, of he supervsory board or a proxy of a legal person referred o n 6). () Ths lm does no o he paren companes and subsdares subjec o he MS supervson on a bass and he FCMC approval. (v) I s necessary o oban approval of he supervsory board of he bank for he concluson of a legal ransacon ha s he bass for he occurence of he exposure of a bank o a person n a specal relaonshp wh he bank. (*). The ably of supervsory auhores o mpose more srngen lms on ndvdual nsuons n crcumsances specfc o hese nsuons s no addressed n he ables dsplayed B: The recasng of he Drecves 2000/12/EC and 93/6/EEC n he Capal Requremens Drecve dd no modfy he arcles menoned n hese ables.

2 Annex [ II-B] Exposures ncurred by a cred nsuon o s paren underakng Exposures ncurred by a cred nsuon o oher subsdares of ha paren underakng Overvew of he lms applcable o large exposures across Europe (con). The nra-group large exposures AT BE C CZ DE DK (x) EE EL (x). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2) 25%, no lm f Lm 1: RWed exposure amoun 20% 20% 25% o lm 25% o lm 20% 20% 20% approval of less han 25 % of capal 20% o lm o lm (***) supervsory requremen(8% of RWA) plus 100% of own funds n excess of he auhory, capal requremen. Lm 2: onrsk weghed exposure amoun (**) =<20% aggregae supervson and 20% 20% 25% o lm 25% o lm 20% 20% 20% less ha oal own funds. 20% o lm o lm (***) cenral monorng process Exposures ncurred by a cred nsuon o s own subsdares 20% 20% 25% o lm 25% o lm 20% 20% 20% 25 %, no lm f supervson o lm o lm 20% o lm 20% o lm (***) ES FI FR HU IE (v) IT LT() LU. Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2) o s paren underakng 20% o lm 20% 20% () 20% 20% 20% o lm 10%/25% o lm (*) 20% o lm 20%/75% 20%/75% 20% 20% (*) (v) o oher subsdares of ha paren underakng 20% o lm 20% 20% () 20% 20% 20% o lm 10%/25% o lm (*) 20% o lm 20%/75% 20%/75% 20% 20% (*) (v) o s own subsdares 20% o lm 20% o lm 20% 20% 20% o lm 10%/25% o lm (*) 20% o lm 20%/75% 20%/75% 20% 20% (*) (v) LV MT L PL PT SE (x) SI SK. Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2) o s paren underakng 15% o lm (v) 20% o lm 25% o lm 20% 20% 20% o lm (v) 20% o lm 25% -nend o change o 20% 25% -nend o change o 20% 20% 20% (v) o oher subsdares of ha paren underakng 15% o lm (v) 20% o lm 25% o lm 20% 20% 20% o lm (v) 20% o lm 20% 20% 20% 20% (v) o s own subsdares 15% o lm (v) 20% o lm 25% o lm 20% 20% 20% o lm (v) 20% o lm 20% 20% 20% 20% (v) o s paren underakng o oher subsdares of ha paren underakng UK IS LI O () RO. Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2). Ar 111(2)... Ar 113(2) 25% o lm 25% o lm 20% o lm 20% 20% 20% o lm (x) 25% o lm 25% o lm 20% o lm 20% 20% 20% o lm (x) Arcle 111(2) Where ha clen or group of conneced clens s Arcle 113(2) : '' Member Saes may fully or parally exemp he paren underakng or subsdary of he cred nsuon and/or from he applcaon of Ar 111(1) o (3) exposures ncurred by a one or more subsdares of ha paren underakng, he cred nsuon o s paren underakng, o oher subsdares of percenage lad down n para 1 [.e 25%] shall be reduced o ha paren underakng or o s own subsdares, n so far as 20%. Member saes may, however, exemp he exposure hose underakngs are covered by he supervson on a ncurred o such clens from he 20% lm f hey provde for bass o whch he cred nsuon self s subjec, n specfc monorng of such exposures by oher measures or accordance wh he CRD or wh equvalen sandards n force n procedures. They shall nform he Commsson and he EBC of a hrd counry. he conen of such measures or procedures. o s own subsdares 25% o lm 25% o lm 20% o lm 25% o lm 20% o lm (x) (*) Subjec o he pror approval of he supervsory compeen auhory () If Bank of Lhuana performs he supervson of he whole group, he lm s 75%. If does no perform he supervson of he whole group, he lm s 20%. () he Fnnsh FSA may gran emporary exempons on a case-by-case bass. () (v) all nsuons n queson mus be subjec o capal requremens. For he applcaon of Ar 113(2), reduced RW n addon o he 20% lm 0% for subsdares, 20 % for paren or oher subsdares. no lm for he exposures o a company s subsdares, paren underakngs or subsdares of paren underakngs ha are cred nsuons, fnancal nsuons (excep nsurance companes) or her ancllary underakngs whose fnancal saemens are for supervsory purposes, provded he FCMC has agreed no o mpose any resrcons on he above exposures. (v) n so far as hey are covered by supervson on a bass o whch he nsuon self s subjec and provded ha hey all have her head offce suaed n Porugal Pendng pror auhorsaon of Banco de Porugal, such exempon may be exended o oher nsuons subjec o supervson on a bass, n complance wh Drecve 2000/12/EC, or wh equvalen regulaons n force n oher counres, provded ha, n he laer case, he equvalence s proven by he nsuon n queson and acceped by Banco de Porugal (v) Subjec o he pror approval of he CSSF, he exempon can be graned on a case by case bass (v) f all counerpars n queson are eher cred nsuons or fnancal nsuons and are subjec o supervson. Subjec o he pror approval of he Irsh regulaor 25% lm apples unless he underakng falls no a caegory oulned n Arcle 113(1), hen a more srngen lm of 10% apples. (v) The supervsor can exemp he exposures from he calculaon of LE f he nsuons n queson are subjec o a supervson on a bass performed by ahe compeen auhory of any EU member sae. (x) (***)subjec o supervson by he Bank of Greece. (**) o companes ha are conrolled by naural or legal persons whch possess a qualfyng holdng o ha cred nsuon, or are ncluded n s fve larges shareholders. Snce beween hese persons are ncluded legal persons, underakngs ha are conrolled by he naural persons ha conrol hese legal persons are also ncluded. (x) From 1 July 2006 onward (x) Arcle 113 (2) mplemened bu no ye exercsed (x) Boh lms have o be fulflled.under lm 1 rsk weghs are 1.0, 0.5 or 0.1 dependen on he facly ype when he counerpary s a cred nsuon or nvesmens frm. Oherwse he rsk wegh s 1.0. Under lm 2 exposures o or guaranee by governmens bodes are exemped B: The recasng of he Drecves 2000/12/EC and 93/6/EEC dd no change he provsons of he Drecves.

3 Annex [ II-C ] Overvew of he reporng requremens across Europe Frequency of he reporng n accordance wh Arcle 110(1) AT BE C CZ DE DK EE EL ES (*) FI FR HU IE IT LV LT LU MT L (**) PL PT SE SI SK UK IS (***) LI O RO When he large exposures are repored an nsuon supervsed on a solo bass When he large exposures are repored an nsuon supervsed on a bass Twce a year and n addon, a any me (a) he level of an exposure o an ndvdual M Q borrower and her conneced M Q Q M Q S Q Q Q Q Q M M Q Q Q M Q Q Q M Q Q Q Q Q persons, repored n he prevous sx-monhly reurn, has ncreased by more han 1% of he nsuon's own funds or CP 1 mllon, whchever s smaller or he M Q exposure has exceed for he Q Q Q Q Q S Q Q S Q Q Q Q Q Q Q Q S Q S S Q Q S Q S frs me he lm of 10% of he cred nsuon s own funds. M Monhly (*) In Span, sgnfcan nsuons repor her large exposures quarerly Q Quarerly (**) In he eherlands, when he paren nsuon does no guaranee s subsdary, hen he subsdary repors s LE on a solo bass, quarerly. S Sem-annually (***) Insuons wh oal balance shee less han 250 KEUR and no large exposures exceedng 20% of own funds are permed o repor on a sem annual bass. B: The recasng of he Drecves 2000/12/EC and 93/6/EEC dd no change he Arcle Exempon of reporng requremens n lad down n Arcle 110(2) AT BE C CZ DE DK EE EL ES FI FR HU IE IT LV LT LU MT L PL PT SE SI SK UK IS LI O RO Exempon of ceran exposures from reporng () () d () d (v) (v) (v) (v) Loosenng of he frequency of he reporng of ceran exposures d d Member saes are n a dfferen sage of he mplemenaon process of he CRD. When based on he CRD, he responses are subjec o changes and shall no be consdered as defnve. Based on he provsons of he Drecve 2000/12/EC Based on he recas Drecve 2000/12/EC: Ar 110(2) saes ha excep n he case of cred nsuons relyng on Arcle 114 for he recognon of collaeral n calculang he value of exposures for he purposes of paragraphs 1, 2 and 3 of Ar 111, exposures exemped under Ar 113 (3) (a),, (c), (d), (f), (g) and (h) need no be repored as lad down n paragraph 1, and he reporng frequency lad down n pon of paragraph 1 may be reduced o wce a year for he exposures referred o n Arcle 113 (3) (e) and (), and n Arcles 115 and 116. Whe cells : he sae of mplemenaon has no been ndcaed. d o decded ye () Exposures o European Communes, cenral governmens and cenral banks of Zone A counres and Regonal auhores n Belgum need no be repored. A specfc reporng of nra-group ransacons s requred. () Ar 113(3) a)b)c)e) and f) wll be exemped. o decson ye for he res () In so far as he rsk-wegh of he exposure s 0% or n so far as he exposure s guaraneed by a counerpary whch s rsk weghed 0%, no needs o be repored. (v) The repor on Large exposures exemped from resrcons on Exposures has o be submed semannually (v) only o governmens and cenral banks of Zone A counres, he European communes and exposurse secured by (elgble) deposs or cerfcaes of deposs (v) he reporng of exposures oally or parally exemped from he lms s requred quaerly on a solo bass and wce a year on a bass. (v) Currenly ems a) o j) of he Drecve 2000/12/EC. SE s consderng exempng all he exposures lsed n Arcle 110(2) Specfc reporng requremens AT BE C CZ DE DK EE EL ES FI FR HU IE IT : specfc reporng of nra-group ransacons and he changes of hese. Repor all he exposures (gross amoun,.e. whou ng weghng percenages and collaeral) whch exceed 10% of oal own funds -he LE reporng ncludes a specal par on conneced clens Repor of exposures o counerpars whch are subjec o spefcc LU LV MT L PL PT SE SI SK UK IS LI O -Repor all -exposures on -Repor of he -wh regard o non-bankng facles -nsuons organzed n he form of a - Repor all he -exposures o - Repors on exposures greaer persons relaed exposures subjec and exposures, he reporng lm s 1% of jon-sock company, sae banks and exposures persons n a all exposures han or equal o he o he nsuon lower of wo amouns whch shall no o specfc lms acual own funds, wh a lower lm of EUR1,361,000; nsuons wh acual unassocaed cooperave banks mus repor all clens where he bank s (gross amoun,.e. whou specal relaonshp wh exceedng a relavely small (a) 10% of own funds n oal exceed own funds of less han EUR 13,613,000 exposure exceeds 500k PL. Assocaed ng he bank are amoun o or 6,25mllon 15 % of he own mus repor all exposures exceedng 10% cooperave banks repor clens whose weghng repored n he underakngs EUR. funds of he of acual own funds. wh regard o exposure exceeds 30 k PL unl he end percenages same way as assocaed wh nsuon shall bankng facles and exposures, he of 2005, 50 k PL from 2006 o he end and collaeral) large exposures he fnancal be repored. reporng lm s 3% of acual own funds, 2010 and 100 k PL afer repor whch exceed underakng n wh a lower lm of EUR4,538,000, or mmedaely an exposure o a sngle pary, 10% of oal queson are or o pares relaed by capal or own funds. colleced on a managemen ha reaches he level of quarerly bass. LT -he reporng ncludes every exposure (poson) separaely, whch does no exceed 10% of capal bu he sum of jon exposures (ne value) for sngle borrower and conneced persons equals or exceeds 10% of capal. - Repor of -all exposures Exposures o whch exceed 'conneced' 5% of persons whch cooperave banks own are subjec o funds (nsead specfc lms of he 10% referred o n ar.108) boh on an ndvdual and a bass, have o be repored on a quarerly bass. 30% of acual own funds, whchever s he lower. Irrespecve of he reporng lms defned above, a leas he en larges posons relang o boh bankng and nonbankng facles and exposures mus be repored. Repor of he exposures subjec o specfc lms - 20 bgges counerpares boh on collaeralsed and noncollaeralsed exposures. 10 counerpares should be banks, he oher 10 should be nonbanks -Repor 10% of own funds gross (before elgble deducons). In addon, any exposure over 300 mllon euros regardless of percenage of own funds s repored. Repor 5% of own funds where he benefcary s he paren or a subsdary of he cred nsuon, one or more subsdares of such paren or shareholder or parner holdng drecly a leas 10% of he vong rghs or capal of such nsuon 10% of s own funds. Repor of he exposures subjec o specfc lms - Repor op 50 cusomers based on correced ne value of exposures. -If here are less han 30 LE o clens and groups of conneced clens (oher han cred nsuons and specfed nvesmen nsuons), suffcen exposures should be repored o brng he oal number of exposures up o 30. When compleed on a group bass he number of exposures repored should be 50. In relaon o exposures o cred nsuons and specfed nvesmen nsuons, f here are less han 20 LE, suffcen exposures should be repored o brng he oal number of exposures up o 20. When compleed on a group bass he number of exposures repored should be Wh regard o oher exposures requred o be repored, f here are less han 20 gross exposures equal o or n excess of he lms lad down, suffcen exposures should be repored o brng he oal number of exposures up o 20. When compleed on a group bass he number of exposures repored should be Repor of exposures o parcular 'relaed' counerpars whch are subjec o spefcc lms. RO

4 Annex [ II-D ] Overvew of he mplemenaon of some of he naonal dscreons graned by he Drecves AT BE C CZ DE DK EE EL ES FI FR HU IE IT LT LU LV Is Ar 3(2) exercsed? (1)? (2a)? Ar110(3)? Transposed bu never appled d nend o o nenon o draf addonal gudance han he wordng of he CRD nend o nend o d nend o nend o o nenon o draf addonal gudance han he wordng of he CRD; no reporng requremen d on a case by case bass d on a case by case bass nend o ranspose Transposed: "Shares and oher secures, ncludng geared holdngs and oher secures, are o be ncluded n he calculaon of he underakng's exposure wh he ssuer of sad holdngs and secures." o nenon o draf addonal gudance han he wordng of he CRD d do no o banks ha use he smple approach for collaeral. Consder o requre IRB banks for cred rsk (or more generally he comprehensve mehod for collaeral) o analyse her for regular exposures o collaeral ssuers, as expec ha hese banks would be able o have he relevan daa a her dsposal. ranspose he provson wh he curren wordng of he CRD. Consder askng reporng of collaerals o nenon o draf addonal gudance han he wordng of he CRD ask for a specfc reporng smlar o he one requred by he Conglomeraes Drecve ranspose. Would adap s reporng srucure o ge addonal nformaon on collaeral ssuers accordngly d d d requre he necessary nformaon d d ranspose nend o d Ar114(1)? D d d d d d Ar115(1)? or or o appled and no nend o or o appled d or o appled d o appled Ar117(1)(a) and/or? d (a) o decded ye (a) f guaraneed by a cenral governmen or secured by collaeral n he form of secures referred o n Ar 113(3)(f) bu mus mee ceran condons (a) f guaraneed by a cred nsuon n Zone A (a) (a) and (a) and Applyng (a) f he guaranor s eher 0 % rskweghed counerpary (e.g. governmen) or cred nsuon and nvesmen frm Gy by 3rd pares use may also be deduced for cenral gov w/ RW 0%, nernal org w/ 0% RW oher pub enes w/ 20% RW, f erm of colla s a leas as long as exposure use (a) (a) These arcles have been nroduced n he Capal requremens Drecve. The Capal Requremens Drecve s no ye been ransposed. Therefore, he responses provded have o be consdered as prelmnary and mgh be subjec o furher changes. For Ar 115 (1), he par added by he CRD s n alcs below Ar 3(2) One or more cred nsuons suaed n he same Member sae and whch are permanenly afflaed on 15 December 1977 o a cenral body whch supervses hem and whch s esablshed n he same MS, may be exemped [among oher hngs] from he Large exposures requremens provded ha, whou prejudce o he applcaon of hose provsons o he cenral body, he whole as consued by he cenral body ogeher wh s afflaed nsuons s subjec o hose provsons on a bass. (a) and (a) Ar 69(1)&(2a) Ar 110(3) Ar 114(1) provde wo wavers of how he Member Saes may choose no o Arcle 68(1) provded ceran condons have been fulflled. Member saes may requre cred nsuons o analyse her exposures o collaeral ssuers for possble concenraons and where approprae ake acon or repor any sgnfcan fndngs o her compeen auhory. In respec of cred nsuons usng he Fnancal Collaeral (Comprehensve Mehod) under Arcles 90 o 93, Arcle 114 (1) allows Member saes o perm such cred nsuons, n he alernave o avalng of he full or paral exempons permed under he specfc pons of Arcle 113(3), o use a value lower han he value of he exposure, bu no lower han he oal of he fully-adjused exposure values of her exposures o he clen or group of conneced clens. Ar 115(1) For he purposes of Arcle 111(1) o (3), member saes may a weghng of 20% o asse ems consung clams on member sae regonal governmens and local auhores where hose clams would receved a 20% rsk wegh under Arcle 78 o 83 and o oher exposures o or guaraneed by such governmens and auhores clams on whch receve a 20% rsk wegh under Arcle 78 o 83. However, member saes may reduce ha rae o 0%o asse ems consung clams on member saes' regonal governmens and local auhores where hose clams would receve a 0% rsk wegh under Arcle 78 o 83 and o oher exposures o or guaraneed by such governmens and auhores clams on whch receve a 0% RW under Arcle 78 o 83. Ar 117(1)(a) gves wo possbles for MS o rea an exposure o a clen whch s guaraneed by a hrd pary

5 Annex [ II-D ] Overvew of he mplemenaon of some of he naonal dscreons graned by he Drecves MT L PL PT SE SI SK UK IS LI O RO Is Ar 3(2) exercsed? (1)? d nend o d nend o nend o (2a)? Ar110(3)? d nend o d d ranspose mplemen hrough a reporng he provson requremen coverng as par of exposures o collaeral Pllar 2 ssuers above a ceran hreshold (e.g. 10%). Follow up measures wll be assessed on a caseby-case bass, hrough he supervsory revew process. d nformaon already avalable n he curren recommenda ons. Consder o make hem mandaory ranspose nend o Informaon already avalable n he curren reporng requre ha a frm mus be able o demonsrae o FSA ha has wren polces and procedures o address and conrol he concenraon rsk arsng from exposures o collaeral ssuers. A frm's applcaon of and adherence o he polcy wll be subjec o supervsory revew. Informaon already avalable hanks o regular meeng nsuons nend o Insuons wll be ranspose ha requred o regard provson ssued collaeral as exposure. They mus esablsh nernal, maxmum lms for hs ype of exposure, bu we leave he quanfcaon of he lms o he nsuons own dscreon. Exposures above he sad lms need o be ncluded n he reporng. d Ar114(1)? Ar115(1)? d d nend o or d or - prob D prob? d d d nend o or or or, bu wh 10 % RW as under sandard mehod. We do no oday hs. d Ar117(1)(a) and/or? (a) bu consder brngng provson more n lne wh CRD (a) and d (a) and (a) (a) and (a) (a) and (a) bu case by case bass d d o decded ye These arcles have been nroduced n he Capal requremens Drecve (CRD). The CRD s no ye been ransposed. Therefore, he responses provded have o be consdered as prelmnary and mgh be subjec o furher changes. For Ar 115 (1), he par added by he CRD s n alcs below Ar 3(2) One or more cred nsuons suaed n he same Member sae and whch are permanenly afflaed on 15 December 1977 o a cenral body whch supervses hem and whch s esablshed n he same MS, may be exemped [among oher hngs] from he Large exposures requremens provded ha, whou prejudce o he applcaon of hose provsons o he cenral body, he whole as consued by he cenral body ogeher wh s afflaed nsuons s subjec o hose provsons on a bass. provde wo wavers of how he Member Saes may choose no o Arcle 68(1) provded ceran condons have been fulflled. Ar 69(1)&(2a) Ar 110(3) Ar 114(1) Ar 115(1) Ar 117(1)(a) Member saes may requre cred nsuons o analyse her exposures o collaeral ssuers for possble concenraons and where approprae ake acon or repor any sgnfcan fndngs o In respec of cred nsuons usng he Fnancal Collaeral (Comprehensve Mehod) under Arcles 90 o 93, Arcle 114 (1) allows Member saes o perm such cred nsuons, n he alernave o avalng of he full or paral exempons permed under he specfc pons of Arcle 113(3), o use a value lower han he value of he exposure, bu no lower han he oal of he fully-adjused exposure values of her exposures o he clen or group of conneced clens. For he purposes of Arcle 111(1) o (3), member saes may a weghng of 20% o asse ems consung clams on member sae regonal governmens and local auhores where hose clams would receved a 20% rsk wegh under Arcle 78 o 83 and o oher exposures o or guaraneed by such governmens and auhores clams on whch receve a 20% rsk wegh under Arcle 78 o 83. However, member saes may reduce ha rae o 0%o asse ems consung clams on member saes' regonal governmens and local auhores where hose clams would receve a 0% rsk wegh under Arcle 78 o 83 and o oher exposures o or guaraneed by such governmens and auhores clams on whch receve a 0% RW under Arcle 78 o 83. gves wo possbles for MS o rea an exposure o a clen whch s guaraneed by a hrd pary

6 Annex [II-E] Treamen of asse ems consung clams on and oher exposures o nsuons across Europe Treamen dependng on he maury =<1 year : Ar 113(3)() allows member saes o fully or parally exemp hem from he applcaon of he lms lad down n Arcle 111 ($) 1 year < maury =< 3 years: Arcle 115(2) allows member saes o a weghng of 20% for he purposes of Arcle 111(1) o (3) < 3 years ($$) : Arcle 115(2) allows member saes o a weghng of 50% for he purposes of Arcle 111(1) o (3) Treamen regardless of he maury By way of derogaon from Arcle 113(3)() and Arcle 115(2), member saes may a weghng of 20% o asse ems consung clams on and oher exposures o nsuons regardless of her maury ($) ($$) d () h e m a u r y s AT BE C CZ DE DK EE EL ES FI FR () HU IE IT LT -0% o appled o appled () o appled :0% o (v) 50%. Exempon o all hree lms:0% for Zone A. o appled Exempon o all hree lms:0% 20%() o appled 20% (v) o appled 20% o appled d o appled 100% 20% 20% 20% 20% d 20%() o appled 50% (v) o appled 50% o appled d o appled 100% 100% 50% 50% 50% (v) d so far no appled. Bu n he fuure (v) d o appled d (20% RW) o appled o appled d o appled no appled d () he choce s lef o he nsuon. I has o be appled conssenly () such exposures may be exemped on a case by case bass on ground of low rskness (v) under he assumpon ha he marke value of he collaeral covers a leas 120% of he value asse ems and oher exposures (v) BE nends o 20% RW o exposures on or guaraneed by nsuonss whch have an nvesmen grade exernal rang or are no exernally raed (v) Only exposures o Zone A banks whch have a cred rang whch s no lower han A by all of he followng cred assessmen nsuons: Moody s Sandard and Poors and Fch Rangs (v) Choce lef o he nsuon. The maury s undersood as 'remanng erm'. Clams o nsuons esablshed n oher counres han G10/EU shall be n he form of readly markeable deb nsrumens. If hs condon s no me, 100% apples. (v) A 50% weghng apples o clams on and oher exposures o cred nsuons or specfed nvesmen nsuons wh a maury or more han 3 years, provded hey are represened by markeable deb nsrumens ssued by a cred nsuon. A 100% weghng apples o clams on and oher exposures o cred nsuons or specfed nvesmen nsuons wh a maury of more han 3 years. (x) o cred nsuons only. The decson wh respec o nvesmen frm has no been aken ye. LU LV MT L PL PT SE () SI SK UK IS LI O RO Treamen dependng on he maury =<1 year : Ar 113(3)() allows member. saes o fully or parally exemp hem Exempon o from he applcaon of he lms lad down n Arcle 111 ($) all hree lms: 0% h e m a u r y s such ems may no consue nsuons' own funds provded ha he laer are represened by deb nsrumens ha were ssued by a nsuon and ha hose deb nsrumens are, n he opnon of he compeen auhores, effecvely negoable on a marke made up of professonal operaors and are subjec o daly quoaon on ha marke, or he ssue of whch was auhorsed by he compeen auhores of he member sae of orgn of he ssung nsuons. n no case may any of hese ems consue own funds. o ye decded The recas Drecve 2000/12 expanded he applcaon of he arcles from 'cred nsuon' o 'nsuon' bu dd no change he spr of he reamen. 20% rsk wegh s appled o clams () on cred nsuons wh a maury of more han one year where a 20% rsk wegh for unsecured cred rsk s graned, () on recognsed nvesmen frms wh a maury of more han one bu less han hree years, () on clearng houses and (v) on recognsed sock exchanges. 1 year < maury =< 3 years: Arcle 115(2) allows member saes o a weghng of 20% for he purposes of Arcle 111(1) o (3) < 3 years ($$) : Arcle 115(2) allows member saes o a weghng of 50% for he purposes of Arcle 111(1) o (3) Treamen regardless of he maury By way of derogaon from Arcle 113(3)() nend and Arcle 115(2), member saes may o a weghng of 20% o asse ems consung clams on and oher exposures o nsuons regardless of her maury 20% 50%. Opon (1): Exempon for nsuons n o all hree EU/G10 counres. lms: 0% Ohers :20%. Opon (2)=20% for all. 20% Opon (1): 20% for nsuons n EU/G10 counres. Ohers :50%. Opon (2)=50% for all. (x) Wll be appled. o appled. Exsng rule: 0% only for exposures o banks wh a maury of =<1monh. Exempon o all hree lms: 0% 20%(x) 20% 20% 20% d o appled. 100% 50% 50% for all 50% (x) 50% 50% 50% d o appled.100% o appled 100% 20% o appled d 100% 50% o appled d o appled o appled o appled o appled o appled d o o appled o appled appled.100% d